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Dr. Ir. Bambang Setiawan, Director General (Mineral, Coal & Geothermal) at the Ministry of Energy & Mineral Resources (MEMR) confirmed his speech at Asia Coal Power conference

Posted on : 20 Dec, 2009

 

Expect an important update on Indonesia's Coal Mining Law Implementation Guidelines at Asia Coal Power conference! Hear from Dr. Ir. Bambang Setiawan, DG (Mineral, Coal & Geothermal) at Ministry of Energy & Mineral Resources- Indonesia.

 

Dr. Bambang would be providing the opening address at Asia Coal Power conference, touching on “Understanding Government's Strategy for Indonesia's Coal Mining Sector”, and the Implementation Guidelines expected to be issued in January 2010.

 

Indonesia's new coal and mining law, which was passed in December 2008, requires coal producers to sell a certain portion of their output to the domestic market since demand at home is expected to surge in coming years as new power projects are completed.

 

Questions remain over the scope of these Implementation Guidelines, and if they are going to account for coal producers who are unable to meet Domestic Market Obligations (DMO). This is especially crucial given the difficulties faced by foreign coal producers holding coal works contracts who have not been able to meet the Domestic Market Obligations spelled out by the Mining Law. This stems from preferences of local buyers to procure cheap coal from smaller rivals.

 

According to a report in Reuters, holders of a coal contract of works (a long-term agreement between foreign firms and the central government) normally sell coal at higher prices, as the pact gives the government a 13.5 percent cut of coal revenue. This contrasts with smaller, domestic rivals, who hold a mining authorization or KP (available only to domestic firms and signed with local governments) who pay a lower coal royalty of between 3-7 percent, depending on the coal varieties.

 

Coal and power industry executives with a vested interest in Indonesia’s coal sector are encouraged to attend Asia Coal Power, where they can hear from, and quiz Dr. Bambang on details of the Implementation Guidelines for the Mining law passed in 2008, future government policies and how it will impact Coal investments in Indonesia.

 

Those keen on attending Asia Coal Power can send in their registrations at the Asia Coal Power website. >>Click Here to access the online registration page<<